Hyderabad: Just 10 days after the state government proposed the “Sanna Biyyam” plan, the price of quality rice has dropped significantly in the wholesale and retail markets. Under the welfare initiative, a congressional-led administration has quickly changed market dynamics through ration stores to provide free rice to white ration card holders.
Chief Minister A. Revanth Reddy launched the program on March 30 by Ugadi. Everyone listed on the white ration card is entitled to free 6 kg of quality rice every month, meaning a family of four can receive up to 24 kg per month. As long as all family members are listed on the card, there is no limit on the total number.
Traders’ response has been very fast. In Malakpet, Rice trader B. Ravi Kumar observed that the wholesale price of the popular Jai Shri Ram (JSR) brand dropped from Rs 5,450 per male punch on March 30 to Rs 4,950 on April 9, down to Rs 4,950, down 500. This has resulted in a drop in retail prices from Rs 68 per kg to Rs 63 per kg.
Other varieties follow suit. “The price of BPT rice dropped from Rs 4,300 to Rs 3,850 per five peaks, and the retail price dropped from €58 to Rs 54 per kilogram,” said Neredmet-based businessman Bandaru Venkaiah. Traders predicted that traders would be steeper once the government expands the planned coverage from the current 25% of ration card holders to the remaining 75% by the end of April. “We expect a reduction of Rs 5 per kilogram in the coming weeks,” Venkaiah added.
As consumers increasingly rely on free supply, retailers that once had more than 100 Duchess cut inventory due to lower demand and lower prices. “We are now buying only 20 to 25 five ladies based on daily needs,” said Amberpet retailer CH, deepak.
Farmers also adapted to government incentives. During the last Kharif season, the bonus per male punch for cultivating exquisite varieties was Rs 500, prompting many to move from coarse grains (Doddu Biyyam) to Sanna Biyyam, a trend that continues in the current rabbit cycle. As procurement accelerates, fresh stocks are expected to flood by May, which may drive prices down. “Once new stocks arrive, prices may take another hit,” Deepak said.
Telangana has about 9 million ration cards, covering 2.85 billion people, and another 3 million cards may be issued after verification. This expansion could bring the total beneficiaries to more than 310 million, or about 80% of the state’s population.
Before “Sanna Biyyam”, many white card holders received coarse grains, which they usually sold to poultry farms and breweries for Rs 12-per kilogram to fund purchases of megami. Now, with free rice, retail demand for purchased rice plummeted, accelerating the price drop.
